The Constitutional Court of Montenegro is said to have rejected Do Kwon's extradition appeal, the South Korean cryptocurrency mogul, officially ending another legal avenue in the legal battle of the co-founder of Terraform Labs.

The court's ruling was made with a high consensus, highlighting the legal contradictions in Kwon's appeal, thereby maintaining the previous ruling in favor of his extradition to the United States and South Korea.

Kwon has become the focus of international investigations since his cryptocurrency empire collapsed in 2022. Authorities in the United States and South Korea have charged him with fraud and financial crimes related to the Terra Luna collapse, causing 40 billion dollars in damages. Both countries have requested Kwon's extradition.

The ruling from the Montenegrin court has increased Kwon's legal risks, as this extradition case could set an important precedent for cross-border accountability issues in the crypto space.

Do Kwon's legal battle began after the Terra Luna cryptocurrency ecosystem collapsed in May 2022. This event led to investigations into allegations of fraud, market manipulation, and violations of securities regulations.

Kwon was arrested in Montenegro in March 2023 while attempting to use a fake passport. This is seen as one of the significant events in cryptocurrency history, shaking investors' confidence in stablecoins and DeFi, while also prompting regulatory crackdowns worldwide.

In April, a U.S. court found Terraform Labs and Kwon liable for fraud in a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC). The court accused Kwon of intentionally deceiving investors and misusing customer funds.

Since his arrest, the Montenegrin judiciary has had to deal with complex issues related to Kwon's dual extradition request, with this decision expected to have a significant impact on the political relationship between the United States and South Korea.

In June, Terraform Labs agreed to pay the SEC approximately 4.47 billion dollars as part of a settlement agreement. This amount includes about 3.6 billion dollars in restitution penalties, 420 million dollars in civil penalties, and nearly 467 million dollars in interest before the ruling.

According to the settlement agreement, Do Kwon is liable for paying 110 million dollars in tax evasion fines, 80 million dollars in civil penalties, and about 14.3 million dollars in interest before the final judgment is issued.

Almost a week after Terraform Labs reached a settlement with the SEC, a court document in April raised controversy regarding the involvement of Montenegrin Prime Minister Milojko Spajic with this cryptocurrency company when he invested 75,000 dollars to purchase 750,000 Terra (LUNA) tokens in April 2018.

Before the SEC disclosed the documents, Spajic had always claimed that he had not invested in this collapsed cryptocurrency project. However, subsequent documents revealed his name on the list of early investors in Terraform Labs, raising many questions about the link between the Prime Minister of Montenegro and the collapse of Terra Luna.